Himachal govt tables amendment Bill to seek ease restrictions on land acquisition for business, industry

According to the draft proposal, the state government plans to simplify the rules framed under Section 118 to ease restrictions on land acquisition. Officials say the reforms aim to address long-standing difficulties faced by investors and enterprises in securing land for establishing projects in Himachal.

The government’s statement of objects and reasons notes that socio-economic conditions in the state have “significantly evolved” over time, and the administration is actively working to promote private investment to strengthen the economy. While maintaining the core intent of Section 118, the government argues that certain provisions now require simplification, along with new enabling measures to facilitate genuine investment.

The draft highlights that many investors who obtained land with bona fide intent are often unable to complete their projects within stipulated timelines due to factors beyond their control. To address such cases, the Bill proposes a mechanism for extension of the project completion period on payment of a prescribed penalty.

It further proposes that short-term leases of buildings for up to ten years for business activities in rural areas be exempted from the purview of Section 118.

In a bid to improve ease of doing business in the housing and real estate sector, the existing exemption allowing the purchase of land and flats from the Himachal Pradesh Housing and Urban Development Authority (HIMUDA) is proposed to be extended to subsequent buyers as well. A similar exemption is being considered for non-agriculturists purchasing completed buildings or flats developed by private real estate companies.

The Bill also addresses long-standing concerns related to cooperative societies. Though most cooperative societies in the state consist predominantly of agriculturist members, they are legally classified as separate entities and therefore cannot purchase land as agriculturists. Likewise, their members cannot transfer their own land to these societies even for genuine economic activities.

The government notes that nearly 20 lakh people in the state are associated with the cooperative movement. The proposed amendment will allow cooperative societies composed entirely of agriculturists to acquire land without seeking permission under Section 118.

The government argues that this change will enable agriculturists to undertake new ventures, generate employment, enhance per capita income and strengthen the rural economy. As many societies are transitioning into multipurpose cooperatives, the amendment is expected to provide them with greater opportunities to undertake economically beneficial projects.

Officials said the overarching goal of the proposed reforms is to reduce barriers for industries and enterprises in acquiring land and to encourage investment across sectors. The government maintains that easing norms under Section 118 will help attract new business activity and promote economic growth in the state.

Bill to extend working hours introduced

The state government will table the Himachal Pradesh Shops and Commercial Establishments (Amendment) Bill, 2025, in the Assembly on Tuesday. The amendment aims to align state laws with recent changes introduced in the corresponding Central Act. A key provision proposes increasing the permissible overtime limit for employees.

Under the proposed norms, the maximum number of working hours in three months will be raised from 115 to 144 hours. Employees will be allowed to work these additional hours only with their explicit consent, and the Bill provides for separate remuneration for the extended work period.

The amendment also seeks to bring certain commercial establishments, previously excluded from the Act’s purview, under the new regulatory framework.

Key proposals made by by HP Tenancy and Land Reforms (Amendment) Bill, 2025

A mechanism for extension of the project completion period on payment of a prescribed penalty

Short-term leases of buildings for up to ten years for business activities in rural areas will be exempted from the purview of Section 118

Existing exemption allowing purchase of land and flats from HIMUDA is proposed to be extended to subsequent buyers as well

Allows cooperative societies composed entirely of agriculturists to acquire land without seeking permission under Section 118